EU, ISSB agree on minimising overlaps in company climate disclosures

illuminem summarizes for you the essential news of the day. Read the full piece on Reuters or enjoy below:

🗞️ Driving the news: The European Union (EU) and the International Sustainability Standards Board (ISSB) have agreed on joint guidance to align climate disclosure standards
• This agreement aims to reduce duplication and simplify compliance for international companies subject to both EU and global reporting standards

🔭 The context: Both the EU's European Sustainability Reporting Standards (ESRS) and the ISSB's new standards demand detailed climate-related disclosures from companies
• The goal is to replace a fragmented system of voluntary disclosures and to counter greenwashing practices

🌍 Why it matters for the planet: Harmonizing these standards will help provide clearer, more consistent reporting on corporate climate impacts, enhancing transparency and accountability in environmental stewardship

⏭️ What's next: This interoperability of standards is set to ease the reporting process for companies, ensuring that compliance with one set of standards largely covers the requirements of the other, streamlining efforts to monitor and manage climate impacts globally

💬 One quote: "It is important that reporting frameworks in different jurisdictions are interoperable with each other to reduce the reporting burden for EU companies," said Mairead McGuinness, EU financial services chief

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